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The 350 cfm carb would be a lot closer to the engine's airflow requirements, if you're driving for mpg economy. If you want more high-rpm performance (not good for mpg), the 500 cfm carb would work better.
Frankly, I think a well-tuned Motorcraft 2150 (the OEM carb for your engine) would give better mpg than either of the Holley carbs.
Yowee! 10mpg. I get a little better than that with a ton of mods and a Demon 4v that probably flows close to 800cfm. A large 2v is not going to be good for economy. If you think about it a four barrel has smaller primaries as long as you keep your foot out of the secondaries.
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